To Roll or Not to Roll (Forward): LP NAV Estimation for Private Equity and Real Estate
Pending receipt of the GP NAVs, LPs grapple with getting a real-time NAV for risk management and rebalancing purposes. What LP method has performed the best?
The growing appetite for private investments increases the potential for liquidity events, which can create a sudden and unexpected need to raise cash and can threaten a fund’s survival.
PGIM's Institutional Advisory & Solutions (IAS) group makes the case for institutional funds to create a dedicated chief liquidity management function.
The IAS team conducts bespoke, quantitative client research that focuses on asset allocation and portfolio analysis.
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Pending receipt of the GP NAVs, LPs grapple with getting a real-time NAV for risk management and rebalancing purposes. What LP method has performed the best?
We estimate the real-world performance of a private strategy – different vs. the reported performance – and fairly compare it with that of a public strategy.
Liquidity risk can be more damaging to portfolios than volatility risk. That’s why institutional funds need dedicated liquidity management.